Press Releases
Bulgari: first half results in line with Group's expectations
- Turnover: 338.3 million Euro
- Operating profit: 33.0 million Euro
- Net profit: 22.6 million Euro
Rome, 13 September 2002 – The Board of Directors of Bulgari S.p.A. presents today in Rome its interim first semester results of 2002.
The Group posted a turnover of 338.3 million Euro showing a decrease of 5.7% compared to the same period of the previous year (358.8 million Euro). Exchange rates had a negligible impact.
During the same period of time Bulgari posted an operating profit of 33.0 million Euro against 61.7 million Euro in 2001 (-46.5%) and a net profit of 22.6 million Euro against 48.2 million Euro in 2001 (-53.2%). The negative economic conjuncture, the strong decline in tourism and the decrease of retailers’ sales had a strong impact on first half results, making it difficult to reach the brilliant results of H1 2001. As far as watch sales are concerned it is to be stressed that the second quarter witnessed an improvement of sales volumes (Q1 2002: -29.2%; Q2 2002: -13.6%). The operating profit was furthermore penalised by a significant decrease of the contribution margin, due to the increase of sales of products with a below average contribution margin and by the negative trend of both exchange rates and raw material costs.
These results are basically in line with the Group’s plans prepared at the beginning of 2002.
Overall operating expenses – which had a strong upward trend in the past – are now flat and even decreased from 175 million Euro of the first semester 2001 to 174 million Euro of the same period this year, thanks to a cost cutting and efficiency improvement program, implemented at the end of last year, and also thanks to the reduction of advertising and promotion investments from 41.6 to 33.6 million Euro.
Net indebtedness of the Group at 30/06/2002 was equal to Euro 268 million Euro against the 301 million Euro at 31/03/2002 and 286 million Euro at 30/06/2001. This reduction has thus caused an improvement of the gearing from 66.3% to 54.8% in the last 12 months.
The improvement of inventory levels continued, in line with management objectives. First semester 2002 witnessed the decrease of the inventory amount to 531 million Euro, against 557 million Euro at 30/03/2002 and 569 million Euro at 30/06/2001.
Francesco Trapani, Chief Executive Officer of the Bulgari Group, commented: “Considering the negative economic conjuncture and the difficult comparison with the brilliant results of 2001, which were characterised by a particularly positive environment, I’m satisfied with the obtained first half results which are in line with our plans. Especially, if taking into account that sales results of the first semester of this year increased by 25% compared to those obtained in the same period of year 2000. Positive elements were also the achievement of a successful cost control and efficiency improvement program and a better use of the invested capital. We will certainly keep implementing such programs in order to obtain further improvements. Despite the uncertainty of the economic and political environment and thanks to the sales results during the summer, I believe that I can confirm for the full year 2002 a similar level of sales and profits as the one obtained in 2001. Furthermore, I believe that a more evident recovery of the business can be realistically expected only during 2003.”
The Board of Directors also approved the accounts of the parent company for the six months of the year 2002 with a net profit of Euro 15.6 million (Euro 18.4 million in the first semester of 2001) including dividends from subsidiary companies for Euro 20.0 million. The parent company’s total revenues in the first half of 2002, consisting almost entirely of income from royalties from the Bvlgari brand, amounted at 21.0 million Euro, showing a decrease of 17.3% compared to Euro 25.4 million for the same period of the previous year.
BULGARI GROUP
Financial highlights
(in Euro 000)
| 30/6/02 | 30/6/01 | ||
|---|---|---|---|
| CONSOLIDATED NET REVENUES | 338.316 | 358.810 | |
| EBIT | 32.990 | 61.672 | |
| NET PROFIT | 22.563 | 48.196 | |
BULGARI GROUP
REVENUES BREAKDOWN BY GEOGRAPHICAL AREA
| GEOGRAPHICAL AREA | 30/6/02 | 30/6/01 | 31/12/01 |
|---|---|---|---|
| ITALY | 13% | 14% | 14% |
| EUROPE EX ITALY | 28% | 25% | 26% |
| AMERICAS | 15% | 16% | 15% |
| JAPAN | 20% | 19% | 22% |
| FAR EAST | 17% | 19% | 17% |
| MIDDLE EAST AND OTHERS | 7% | 7% | 6% |
| TOTAL | 100% | 100% | 100% |
BULGARI GROUP
REVENUES GROWTH BY GEOGRAPHICAL AREA
| GEOGRAPHICAL AREA | 30/6/02 | 30/6/01 | 31/12/01 |
|---|---|---|---|
| ITALY | -9% | +54% | +19% |
| EUROPE EX ITALY | +5% | +35% | +24% |
| AMERICAS | -15% | +6% | -16% |
| JAPAN | - | +11% | +17% |
| FAR EAST | -19% | +59% | +14% |
| MIDDLE EAST AND OTHERS | +5% | +82% | +59% |
| TOTAL | -6% | +32% | +13% |
BULGARI GROUP
REVENUES BREAKDOWN BY PRODUCT CATEGORY
| PRODUCT CATEGORY | 30/6/02 | 30/6/01 | 31/12/01 |
|---|---|---|---|
| JEWELS | 39% | 36% | 38% |
| WATCHES | 35% | 42% | 39% |
| PERFUMES | 19% | 15% | 16% |
| ACCESSORIES | 5% | 5% | 5% |
| ROYALTIES + OTHER | 2% | 2% | 2% |
| TOTAL | 100% | 100% | 100% |
BULGARI GROUP
REVENUES GROWTH BY PRODUCT CATEGORY
| PRODUCT CATEGORY | 30/6/02 | 30/6/01 | 31/12/01 |
|---|---|---|---|
| JEWELS | +2% | +36% | +26% |
| WATCHES | -21% | +20% | -6% |
| PERFUMES | +20% | +48% | +37% |
| ACCESSORIES | -6% | +85% | +48% |
| ROYALTIES + OTHER | -7% | +36% | +11% |
| TOTAL | -6% | +32% | +13% |